UP Open Access Solar Charges FY 2026-27: Wheeling, CSS and Surcharge

Direct Answer: What Are UP Open Access Solar Charges for FY 2026-27?

The bottom line is that Uttar Pradesh's open access solar charges for FY 2026-27, as approved by the UPERC Tariff Order dated July 2, 2026, consist of three primary components: wheeling charges, cross-subsidy surcharge (CSS), and transmission charges (both intra-state and inter-state). The approved wheeling charge has been reduced to ₹0.9318 per kWh for distribution open access consumers, while CSS rates vary by voltage level and consumer category, ranging from ₹0.38 per kWh to ₹1.53 per kWh.

In short, UPERC has maintained regulatory stability for open access consumers by capping CSS at the lower of the FY 2025-26 approved value or the newly calculated value. This means even where the revised Multi-Year Tariff (MYT) methodology resulted in a higher CSS, consumers will continue to pay the lower amount, providing tariff certainty and avoiding sudden increases in open access costs.

This means that for a typical HV-2 industrial consumer connected at 11 kV procuring solar power through open access, the total open access charges (wheeling plus CSS) amount to approximately ₹1.31 per kWh, before accounting for transmission charges. When intra-state transmission charges are added, the total landed cost adder can range from approximately ₹1.50 to ₹2.50 per kWh depending on voltage level and connection type.

Key Takeaways

• Wheeling charge for FY 2026-27: ₹0.9318 per kWh (reduced marginally from prior year)
• Cross-Subsidy Surcharge (CSS) ranges from ₹0.38 to ₹1.53 per kWh by voltage and category
• CSS is capped at the lower of FY 2025-26 approved value or newly calculated value — protecting consumers from sudden increases
• Transmission-only consumers (using only the State Transmission Network) are exempt from distribution wheeling charges
• Green Energy Tariff remains optional at ₹0.34 per unit for HV consumers and ₹0.17 per unit for LV/LMV consumers
• UPERC Tariff Order effective approximately July 9, 2026 (7 days after publication)
• No tariff hike for the seventh consecutive year across all consumer categories
• Total open access landed cost adder: approximately ₹1.50 to ₹2.50 per kWh depending on voltage and connection type
• Open access charges are governed by UPERC (Terms and Conditions for Open Access) Regulations, 2019 and subsequent amendments

For a broader comparison across states, see our solar open access state comparison India 2026 guide. For fundamentals, start with our open access solar India guide.

Verified Snapshot: UP Open Access Charges FY 2026-27

Understanding the Open Access Charge Framework

Open access allows electricity consumers to procure power directly from generators or power exchanges rather than from their local DISCOM, while using the DISCOM's distribution network and the state transmission network for wheeling. The Electricity Act, 2003, under Sections 39, 40, and 42, provides the legal basis for non-discriminatory open access, with the State Commission specifying transmission charges and surcharges.

In UP, open access is governed by the UPERC (Terms and Conditions for Open Access) Regulations, 2019, along with the First Amendment Regulations, 2024, and the Removal of Difficulty First Order, 2026. The key charges that an open access solar consumer must pay are:

1. Wheeling Charges — for use of the distribution network
2. Cross-Subsidy Surcharge (CSS) — to compensate the DISCOM for loss of revenue when a consumer exits the regulated tariff system
3. Transmission Charges — intra-state (UPPTCL) and inter-state (CTU/POSOCO) for use of the transmission network
4. SLDC Charges — State Load Despatch Centre charges for scheduling and dispatch
5. Additional Surcharge — to cover fixed costs of the DISCOM (applicable in certain cases)

To summarize, the total landed cost of open access solar power equals the solar PPA tariff plus all applicable open access charges. Understanding each component is critical for evaluating whether open access solar makes economic sense for your facility. For a broader overview of the commercial and industrial solar landscape in India, and for help selecting an implementation partner, see our solar EPC company India and solar provider India guides.

Charge-by-Charge Breakdown

1. Wheeling Charges

The UPERC Tariff Order for FY 2026-27 has approved a wheeling charge of ₹0.9318 per kWh for distribution open access consumers. This is a marginal reduction from the prior year, lowering network charges for distribution-level open access.

Importantly, consumers using only the State Transmission Network (i.e., connected directly to the transmission system without using the distribution network) continue to remain outside the applicability of distribution wheeling charges. This means if your facility is connected at 132 kV or above and does not use the distribution network, you do not pay the wheeling charge.

The wheeling charge is calculated based on the approved Wheeling and Retail Supply ARR for FY 2026-27, as submitted by the DISCOMs and approved by the Commission. The wheeling ARR is separated from the retail supply ARR to ensure that open access consumers pay only for the network usage component, not for retail supply services they do not use.

2. Cross-Subsidy Surcharge (CSS)

The CSS is the most significant variable in the open access cost equation. UPERC has approved the following CSS rates for FY 2026-27:

A critical regulatory protection in the FY 2026-27 order is that UPERC has capped CSS at the lower of the FY 2025-26 approved value and the newly calculated value. This means that even where the revised MYT methodology resulted in a higher CSS calculation, consumers will continue to pay the lower amount. This provides tariff certainty and avoids sudden increases in open access costs.

The CSS is computed using the formula prescribed under the National Tariff Policy and UPERC regulations, which considers the voltage-wise cost of supply, distribution losses at various voltage levels, and the applicable tariff for the consumer category. The computation involves:

• Cost of Supply (CoS): The voltage-wise cost of supply worked out by the Commission
• Distribution Loss: Approved distribution losses at various voltage levels for OA consumers
• Open Access Tariff: The tariff the OA consumer would have paid to the DISCOM
• APPC: The Average Power Purchase Cost for the DISCOM

The formula is: CSS = CoS minus APC plus D plus T, where adjustments are made for the applicable consumer category and voltage level. UPERC has published detailed tables (Tables 10-11 through 10-14 in the Tariff Order) showing the voltage-wise cost of supply, distribution losses, and the final computed and approved CSS.

3. Transmission Charges

Transmission charges consist of two components:

• Intra-State Transmission Charges (TC-INTRA): Approved by UPERC for UPPTCL (Uttar Pradesh Power Transmission Corporation Limited). The UPPTCL tariff order for FY 2026-27 was issued on April 15, 2026, approving the ARR and intra-state transmission tariff. These charges are based on the pooled total transmission system cost and base transmission capacity rights.

• Inter-State Transmission Charges (TC-INTER): Payable to CTU/POSOCO for use of the inter-state transmission system. These are determined by the Central Electricity Regulatory Commission (CERC).

The aggregate of transmission, distribution, and wheeling charges applicable to the relevant voltage level is computed as: D = TC-INTER plus TC-INTRA plus DC plus WC, where DC is the distribution/retail supply charge component and WC is the wheeling charge.

4. Additional Surcharge

Under Section 42(4) of the Electricity Act, 2003, the State Commission may impose an additional surcharge to cover fixed costs arising out of contractual obligations of the DISCOM. In UP, the additional surcharge applicability should be verified with UPERC and the relevant DISCOM, as it may apply in specific circumstances where the DISCOM has contracted power purchase agreements that create stranded capacity due to open access consumers exiting the system.

5. SLDC Charges

The Uttar Pradesh State Load Despatch Centre (UPSLDC) charges are approved separately by UPERC under the UPERC (Fees and Charges of State Load Despatch Centre and other related matters) Regulations. These charges cover scheduling, dispatch, and system operation functions. Verify the current SLDC charges with UPERC's latest order for FY 2026-27.

This means the total open access cost stack includes multiple layers, and each must be accounted for in your landed cost calculation.

Landed Cost Calculation: Voltage-Wise Examples

To understand the real economics of open access solar in UP, let us calculate the landed cost for a typical industrial consumer at different voltage levels. These calculations use the approved FY 2026-27 charges and assume a solar PPA tariff of ₹3.50 per kWh (a representative rate for competitively procured solar power).

Example 1: HV-2 Consumer at 11 kV

Compare this to the DISCOM tariff for HV-2 at 11 kV: energy charge of ₹7.70 per kVAh plus demand charge of ₹380 per kVA per month. For a consumer with a load factor of approximately 50 percent, the effective energy rate including demand charges works out to approximately ₹8.50 to ₹9.50 per unit.

The bottom line is that open access solar at 11 kV offers savings of approximately ₹3.20 to ₹4.40 per unit compared to the DISCOM tariff, even after accounting for all open access charges.

Example 2: HV-2 Consumer at 66 kV

The DISCOM tariff for HV-2 at 66 kV is ₹7.50 per kVAh plus ₹360 per kVA per month. Savings are similar to the 11 kV case, approximately ₹3.00 to ₹4.20 per unit.

Example 3: Transmission-Only Consumer at 132 kV or Above

For consumers connected directly to the transmission system at 132 kV or above, the distribution wheeling charge does not apply:

The DISCOM tariff for HV-2 above 132 kV is ₹6.10 per kVAh plus ₹270 per kVA per month. The savings for transmission-only consumers are approximately ₹1.80 to ₹2.80 per unit, lower than distribution-connected consumers because the base tariff is already lower at higher voltages.

In short, the savings from open access solar in UP are most attractive for consumers connected at lower voltage levels (11 kV) where the DISCOM tariff is highest and the CSS is lowest.

For more on evaluating solar investments, see our solar IRR calculation methodology India and solar panel ROI payback period India guides.

Captive Solar Treatment Under Open Access

Captive solar power projects — where the consumer owns at least 26 percent equity and consumes at least 51 percent of the power generated — are treated differently from third-party open access transactions. Under the UPERC Captive and Renewable Energy (CRE) Regulations, 2024, captive generating plants (CGPs) may be exempt from certain open access charges.

UPERC issued an important order in June 2026 (Petition No. 2368 of 2026) resolving a deadlock on banking agreements for 13 captive solar users. The Commission directed UPPCL to execute fresh Wheeling and Banking Agreements for these captive users by June 30, 2026, based on their existing capacities. The key relief was that the reduction of open access or long-term open access (LTOA) quantum was not a valid precondition for entering into banking agreements.

However, UPERC also protected the state's interests by making the petitioners subject to final verification of their captive status for FY 2024-25. If any adverse findings emerge, the companies will be liable to pay applicable cross-subsidy surcharges, additional surcharges, relinquishment charges, and other legal dues.

To summarize, captive solar consumers in UP should:

1. Ensure compliance with the 26 percent equity and 51 percent consumption requirements
2. Execute Wheeling and Banking Agreements with UPPCL
3. Be prepared for captive status verification
4. Understand that non-compliance with captive requirements will result in full open access charges including CSS

For a deeper dive into captive structures, see our group captive solar India guide.

Banking Provisions

The UPERC CRE Regulations, 2024, introduced limits on monthly energy banking for renewable-energy-based Captive Generating Plants. Following these changes in late 2025, several captive users were required to reduce or align their existing Open Access (OA) and Long-Term Open Access (LTOA) capacities.

For solar open access consumers, banking allows surplus generation during high-solar months to be banked and withdrawn during low-solar months. The monthly banking limit under the CRE Regulations, 2024, means that the quantum of energy banked in any given month is capped, which affects the flexibility of seasonal load matching.

UPERC's June 2026 order directed that banking benefits would continue for the intervening period while fresh agreements are executed. This means captive solar consumers can continue to leverage banking facilities, but should verify the specific monthly limits with UPPCL and UPERC.

Commonly Missed Costs

When calculating the landed cost of open access solar in UP, several costs are frequently overlooked:

1. SLDC Charges

State Load Despatch Centre charges for scheduling and dispatch are often missed in initial calculations. While relatively small (approximately ₹0.05 to ₹0.10 per kWh), they add up over the project life.

2. Additional Surcharge

Under Section 42(4) of the Electricity Act, 2003, an additional surcharge may be imposed to cover fixed costs of the DISCOM. Verify with UPERC whether this applies to your specific case.

3. Banking Charges and Limitations

Monthly banking limits under the CRE Regulations, 2024, can reduce the effective value of banked energy. If you exceed the monthly banking limit, surplus energy may be settled at a lower rate or forfeited.

4. Distribution Loss Adjustment

The CSS computation accounts for distribution losses at various voltage levels. Open access consumers connected at lower voltage levels bear higher distribution losses in the CSS calculation, which increases their CSS.

5. Relinquishment Charges

If you need to reduce your open access or LTOA capacity, relinquishment charges may apply. UPERC provided a one-time waiver on relinquishment charges for capacity reduction through UPPTCL in late 2025, but this was a specific, time-limited relief.

6. Metering and Communication Infrastructure

Open access consumers may need to install special metering and communication infrastructure for scheduling and real-time monitoring. These upfront and ongoing costs should be factored into the project budget.

This means the total cost of open access solar is more than just the PPA tariff plus wheeling plus CSS. A thorough financial model must account for all the layers described above.

Verification Steps Before Committing to Open Access Solar

Before finalizing your open access solar procurement decision in UP, follow these verification steps:

1. Verify your voltage level and consumer category — This determines your CSS rate and whether wheeling charges apply
2. Obtain the latest CSS computation tables from the UPERC Tariff Order (Tables 10-11 through 10-14) for your specific voltage level
3. Confirm whether additional surcharge applies to your case by checking with UPERC and your DISCOM
4. Verify SLDC charges for FY 2026-27 from the latest UPERC order on SLDC fees and charges
5. Check banking limits under the CRE Regulations, 2024, if you plan to use banking
6. Obtain intra-state transmission charges from the UPPTCL Tariff Order for FY 2026-27 (dated April 15, 2026)
7. Confirm inter-state transmission charges from CERC orders if your power crosses state boundaries
8. Review the UPERC Open Access Regulations, 2019 (and 2024 amendment) for eligibility and procedural requirements
9. Calculate the effective DISCOM tariff including demand charges and ToD adjustments for your load profile
10. Stress-test your savings model using the methodology below

Stress-Testing Your Open Access Solar Savings

To ensure your open access solar investment is robust, stress-test your financial model against the following scenarios:

Scenario 1: CSS Increase

Although UPERC has capped CSS at the lower of FY 2025-26 and FY 2026-27 values, future years may see CSS increases as the cross-subsidy reduction trajectory progresses. Model a 20 percent increase in CSS to test sensitivity.

Scenario 2: Wheeling Charge Revision

The wheeling charge was reduced to ₹0.9318 per kWh for FY 2026-27. Model a 15 percent increase to test the impact of future revisions.

Scenario 3: Lower Solar PPA Tariff

If you are negotiating a new PPA, model the impact of a ₹0.25 per kWh reduction in the solar tariff. National solar tariffs have been declining, which could improve economics.

Scenario 4: Reduced Load Factor

If your facility's load factor drops (e.g., due to production cuts), the demand charges in the DISCOM tariff become a larger proportion of the effective rate, potentially widening the savings gap. Model a 20 percent reduction in consumption.

Scenario 5: Banking Limit Tightening

If monthly banking limits are further tightened, the value of seasonal surplus decreases. Model a 30 percent reduction in banked energy value.

The bottom line is that open access solar in UP remains economically attractive across most stress-test scenarios, with savings of ₹1.80 to ₹4.40 per unit even under conservative assumptions. However, the exact savings depend heavily on your voltage level, load profile, and PPA tariff. For comparison with how UP's net metering policy interacts with open access decisions, and for exploring rooftop solar as an alternative, see our dedicated guides.

For comparison with other states' open access economics, see our solar open access state comparison India 2026 guide. For alternative solar procurement models, explore RESCO OPEX solar model India.

Frequently Asked Questions

What is the wheeling charge for open access solar in UP for FY 2026-27?

The approved wheeling charge for FY 2026-27 is ₹0.9318 per kWh for distribution open access consumers. This is a marginal reduction from the prior year. Consumers using only the State Transmission Network (connected at 132 kV or above without using the distribution network) are exempt from distribution wheeling charges.

What is the cross-subsidy surcharge (CSS) for HV-2 industrial consumers in UP?

For HV-2 (Large and Heavy Power) consumers, the CSS is ₹0.38 per kWh at 11 kV and ₹0.49 per kWh above 11 kV up to 66 kV. UPERC has capped CSS at the lower of the FY 2025-26 approved value or the newly calculated value, protecting consumers from sudden increases.

How is the CSS calculated in UP?

The CSS is calculated using the formula: CSS = Cost of Supply minus APC plus Distribution loss adjustment plus Transmission charges, adjusted for the consumer's voltage level and category. UPERC publishes detailed computation tables (Tables 10-11 through 10-14 in the Tariff Order) showing voltage-wise cost of supply, approved distribution losses, and the final approved CSS.

Are captive solar projects exempt from open access charges in UP?

Captive solar projects that meet the 26 percent equity ownership and 51 percent consumption requirements may be exempt from certain open access charges, particularly CSS. However, captive status is subject to verification by UPERC. If captive requirements are not met, the consumer becomes liable for full open access charges including CSS, additional surcharge, and relinquishment charges.

What is the Green Energy Tariff in UP and is it mandatory?

The Green Energy Tariff is an optional additional tariff of ₹0.34 per unit for HV consumers and ₹0.17 per unit for LV/LMV consumers who wish to procure green power through their DISCOM. It is not mandatory. The Commission capped the green tariff at ₹0.34 per unit even though the computed rate was ₹0.48 per unit.

How do I calculate the total landed cost of open access solar in UP?

The total landed cost equals the solar PPA tariff plus wheeling charge plus CSS plus intra-state transmission charges plus inter-state transmission charges (if applicable) plus SLDC charges plus any additional surcharge. For an HV-2 consumer at 11 kV with a ₹3.50 per kWh PPA, the total landed cost is approximately ₹5.06 to ₹5.31 per kWh.

Has UPERC changed open access charges significantly for FY 2026-27?

No. UPERC has maintained regulatory stability for open access consumers. The wheeling charge was reduced marginally to ₹0.9318 per kWh, and CSS has been capped at the lower of the prior year or newly calculated value. The overall framework signals predictability rather than radical change, which is positive for long-term renewable PPA planning.

What regulations govern open access in UP?

Open access in UP is governed by the UPERC (Terms and Conditions for Open Access) Regulations, 2019, along with the First Amendment Regulations, 2024, and the Removal of Difficulty First Order, 2026. Additionally, the UPERC Captive and Renewable Energy (CRE) Regulations, 2024, govern captive power projects, and the UPERC Tariff Order for FY 2026-27 (dated July 2, 2026) specifies the annual charge rates.

Sources

1. UPERC Tariff Order for UPPCL DISCOMs FY 2026-27 (Petition Nos. 2316/2025 through 2315/2025, dated July 2, 2026) — UPERC: https://www.uperc.org/App_File/UPPCLTariffOrder-pdf72202630517PM.pdf
2. UPPCL Public Notice FY 2026-27 (Rate Schedule) — UPPCL: https://www.uppcl.org/site/writereaddata/siteContent/202607061409355940Press%20English_FY%202026-27.pdf
3. UPERC Tariff Order Summary FY 2026-27 — Power Peak Digest: https://powerpeakdigest.com/uperc-retains-fy27-power-tariffs-raises-subsidy-and-expands-ev-benefits/
4. UPERC Open Access Regulations, 2019 — UPERC Notified Documents: https://www.uperc.org/Notified_User.aspx
5. UPERC (Terms and Conditions for Open Access) First Amendment Regulations, 2024 — UPERC: https://www.uperc.org/notified_user.aspx
6. UPERC Open Access Removal of Difficulty First Order, 2026 — UPERC: https://www.uperc.org/Notified_User.aspx
7. UPPTCL Tariff Order FY 2026-27 (Petition No. 2320/2025, dated April 15, 2026) — UPERC: https://www.uperc.org/App_File/UPPTCL_TariffOrder_26_27_DigitallySigned-pdf415202652122PM.pdf
8. UPERC Captive and Renewable Energy (CRE) Regulations, 2024 — UPERC: https://www.uperc.org/Notified_User.aspx
9. UPERC Order on Banking Agreements for Captive Solar Users (Petition No. 2368 of 2026, June 2026) — SolarQuarter: https://solarquarter.com/2026/06/24/uperc-resolves-banking-agreement-deadlock-for-captive-solar-users-extends-relief-to-13-cgps-in-uttar-pradesh/
10. UPERC Tariff Order 2026: Regulatory Update for Open Access Consumers — LinkedIn post by Anil Kumar Bairwa: https://www.linkedin.com/posts/anil-kumar-bairwa-6a8311222_uperc-tarifforder2026-openaccess-activity-7478988449492938752-A3hy
11. UPERC Tariff Order developments for Industrial and Commercial OA consumers — LinkedIn post by Sunil Jangra: https://www.linkedin.com/posts/seelujangra_uperc-css-transmission-activity-7478802469893021696-q_bH
12. UPERC Mandates Banking Agreements for Captive Solar Consumers — MVA Pulse: https://www.mvapulse.com/uperc-mandates-banking-agreements-for-captive-solar-consumers/
13. No power tariff hike in UP for seventh straight year — Hindustan Times: https://www.hindustantimes.com/cities/lucknow-news/no-power-tariff-hike-in-up-for-seventh-straight-year-101783018529454.html
14. Uttar Pradesh Retains Retail Power Tariffs for FY 2026-27 — Mercom India: https://www.mercomindia.com/uttar-pradesh-retains-retail-power-tariffs-for-fy-2026-27
15. UPERC Tariff Orders page — UPERC: https://www.uperc.org/Tariff_Order_Users.aspx

Regulatory status last checked: July 24, 2026. All charges are based on the UPERC Tariff Order dated July 2, 2026 (Petition Nos. 2316/2025 through 2315/2025) and the UPPTCL Tariff Order dated April 15, 2026. Intra-state transmission and SLDC charge estimates should be verified with UPPTCL and UPERC directly for precise landed cost calculations. CSS rates are capped at the lower of FY 2025-26 or FY 2026-27 values per UPERC directive.